Question

An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.1436%.

What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.

$

What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.

%

Answer #1

Current Yield for a bond = Annual Coupon/Current Bond Price.

An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.3356%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.

An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.3977%. What are the
bond's price and YTM? (Hint: Refer to Footnote 6 for the definition
of the current yield and to Table 7.1) Do not round intermediate
calculations. Round your answer for the bond's price to the
nearest cent and for YTM to two decimal places.
Bondâ€™s price: $ =
YTM: =

A 7% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 7.7535%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.
%

An 8% semiannual coupon bond matures in 5 years. The bond has a
face value of $1,000 and a current yield of 8.3765%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 7 for the
definition of the current yield and to Table 7.1.) Do not round
intermediate calculations. Round your answers to two decimal
places.
%

A 7% semiannual coupon bond matures in 4 years. The bond has a
face value of $1,000 and a current yield of 7.5146%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.
%

PRICE AND YIELD
An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.4446%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 7 for the
definition of the current yield and to Table 7.1.) Do not round
intermediate calculations. Round your answers to two decimal
places.

A 7% semiannual coupon bond matures in 4 years. The bond has a
face value of $1,000 and a current yield of 7.5452%.
What is the bond's price? Do not round intermediate
calculations. Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 7 for the
definition of the current yield and to Table 7.1.) Do not round
intermediate calculations. Round your answers to two decimal
places.

Problem 7-13
Price and yield
An 7% semiannual coupon bond matures in 4 years. The bond has a
face value of $1,000 and a current yield of 7.4538%.
a.What is the bond's price? Round your answer to the nearest
cent.
$
b.What is the bond's YTM? (Hint: Refer to Footnote 7 for
the definition of the current yield and to Table 7.1.) Round your
answers to two decimal places.
%

An 8% semiannual coupon bond matures in 4 years. The bond has a
face value of $1,000 and a current yield of 8.1793%.
A. What is the bond's price? Do not round intermediate
calculations. Round your answer to the nearest cent.
B. What is the bond's YTM?

A 7% semiannual coupon bond matures in 5 years. The bond has a
face value of $1,000 and a current yield of 7.4352%.
a. What is the bond's price? Do not round intermediate
calculations. Round your answer to the nearest cent.
b. What is the bond's YTM? Do not round intermediate
calculations. Round your answers to two decimal places.

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